Brics beckons: How Iran aims to defy US sanctions and shift global dynamics

Iran’s inclusion in Brics (Brazil, Russia, India, China and South Africa) has sparked renewed discussions about the group’s changing influence on global politics and the economy. As competition grows between the US-led Western powers and emerging nations like China and Russia, Iran’s participation in Brics highlights its efforts to break free from international isolation. By aligning with these non-Western countries, Iran aims to reduce the impact of US sanctions and boost its influence globally.

Using Brics to overcome US sanctions

Iran’s official entry into Brics in January 2024 goes beyond just symbolic importance—it’s a strategic move. By joining the bloc, Iran is seeking stronger ties with key Brics members like China, India and Russia, which continue to trade with Iran despite US sanctions. Brics provides Iran with a platform to expand its energy exports and trade without relying on the US dollar. With one of the largest oil and gas reserves in the world, Iran’s participation in Brics could lead to new energy deals that challenge US financial dominance.

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Domestic efforts to strengthen BRICS cooperation

Iran is actively working on improving its cooperation with Brics through domestic initiatives. On October 21, 2024, President Masoud Pezeshkian led a high-level meeting to discuss ways to speed up agreements with Brics and tackle any challenges. Important officials like the ministers of foreign affairs, economy and finance, as well as the Governor of the Central Bank of Iran, were present. They focussed on existing agreements and joint projects with Brics countries.

This meeting shows Iran’s strong commitment to deepening its relationship with Brics in areas like economy, infrastructure and diplomacy. Ministers from different sectors stressed the need for quick action on joint projects reflecting a unified government effort to make Brics a key part of Iran’s economic recovery and strategy.

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Iran’s energy diplomacy

Iran’s participation in Brics opens up major opportunities in energy diplomacy. With its huge reserves of oil and natural gas, Iran is especially attractive to Brics members like China and India, who are looking for diverse energy sources. Iran aims to use Brics not only to expand its energy exports but also to attract investments to upgrade its energy infrastructure. However, US sanctions still create challenges, especially for Brics members that have trade relations with Western countries. How well Iran manages these sanctions will be crucial to its success in using Brics as a platform for energy trade.

The domestic meeting also discussed Iran’s involvement in joint projects with Brics, focussing on areas like energy, mining, infrastructure and technology. The government is pushing for quick implementation of these agreements to show real progress, especially as Iran’s economy struggles under sanctions.

Geopolitical dynamics

Iran’s participation in Brics adds complexity to the group’s geopolitical direction. China and Russia, the leading powers in Brics, are both dealing with tensions with the West—China with its rivalry against the US, and Russia with the ongoing war in Ukraine. Both see Iran’s inclusion in Brics as a way to strengthen an anti-Western alliance, positioning the group as a counter to Western economic power. Iran’s strong stance against the US, along with its alignment with China and Russia, reinforces BRICS’ shift towards a more multipolar world, where US influence faces more challenges.

However, not all Brics members share Iran’s geopolitical goals. India, for example, values its energy ties with Iran but is careful not to upset the US, a key defence partner. Similarly, Brazil and South Africa are more focused on economic growth and political stability rather than opposing the West. These different priorities within Brics could limit how much Iran can achieve through the group for its own strategic goals.

Iran’s engagement at the 16th Brics Summit in Russia

Iranian President Pezeshkian is set to strengthen Iran’s position within Brics by attending the 16th annual Brics summit in Kazan, Russia, from October 22-24, 2024. This summit will be an important opportunity for Iran to discuss its involvement in joint projects, boost trade, and increase strategic cooperation with other Brics nations. It will also help Iran build stronger ties with Russia, another country facing Western sanctions, reinforcing their shared stance against US economic pressure.

By participating in high-level Brics meetings, Iran aims to directly engage with member countries to enhance cooperation. The summit will likely focus on key issues for Iran, such as energy exports, regional security and expanding trade without relying on the US dollar.

Iran’s calculated gamble in Brics

Iran’s decision to join Brics is a strategic move to challenge US influence and improve its economy, which has been weakened by sanctions. However, the different goals of Brics members and the effect of US secondary sanctions might limit how much Iran can benefit from this alliance. Despite these challenges, Iran is working hard at home to overcome obstacles to Brics cooperation and speed up joint projects, showing its determination to make the most of this new diplomatic partnership.

As President Pezeshkian prepares for the 2024 Brics summit, attention will be on how Iran directs its relationships with the group’s diverse members and whether Brics can provide the economic and geopolitical support Iran needs. In the current global climate, Iran’s role in Brics will be a key factor in discussions about the future of the world order.